DAILY NEWS

Daily News – 24, 25 & 26 Apr 2021 ( Fri, Sat, Sun)

Singapore Real Estate

One-North Eden 85% sold
One-North Eden in Buona Vista has reported that it is 85 per cent sold over the weekend – that is, 140 out of 165 apartments have been moved in a virtual launch as at Sunday 6pm. Sales across all unit types were strong, with the selling price working out to about S$1,800 to S$2,250 per square foot (psf), noted TID, the developer, in a media statement on Sunday. TID is a joint venture between Hong Leong Holdings and Mitsui Fudosan, a Japanese real estate developer.
https://www.businesstimes.com.sg/real-estate/one-north-eden-85-sold
https://www.straitstimes.com/business/property/one-north-eden-condo-85-sold-on-launch-weekend-at-1800-2250-psf

Singapore’s contractors association sourcing workers from countries other than India
Following the immediate restriction of entry for non-Singaporean residents from India, the Singapore Contractors Association Ltd (SCAL) said that it is working progressively to source for manpower from countries other than India. In its statement on Friday, SCAL said that the tightening of the measures will “adversely affect” the inflow of construction workings and “negatively impact” the timeline of construction projects, causing further delays.
https://www.businesstimes.com.sg/government-economy/singapores-contractors-association-sourcing-workers-from-countries-other-than-0
https://www.straitstimes.com/singapore/housing/home-buyers-face-longer-wait-time-higher-costs-with-new-border-curbs

Singapore Economy

Inflation could be the next big risk for investors
Singapore’s inflation data for March, released this past week, hewed to a global trend that has been making some market watchers nervous. The headline consumer price index (CPI) climbed 1.3 per cent year-on-year in March, a significantly faster rate of increase than the 0.7 per cent recorded for February and the 0.2 per cent for January.
https://www.businesstimes.com.sg/companies-markets/inflation-could-be-the-next-big-risk-for-investors
https://www.straitstimes.com/business/economy/higher-cost-of-services-drives-up-inflation-in-march

Singapore core and headline inflation up again in March
Singapore’s core inflation rose in March, staying positive for the second straight month after more than a year in negative territory, Department of Statistics consumer price index (CPI) figures showed on Friday. Core inflation, which strips out the costs of accommodation and private road transport, was 0.5 per cent in March versus 0.2 per cent in February. Headline inflation was 1.3 per cent, up from 0.7 per cent.
https://www.businesstimes.com.sg/companies-markets/singapore-core-and-headline-inflation-up-again-in-march

Online retail boom gets reality check
Last year’s Covid-19 circuit breaker looked like boom time for e-commerce, as shuttered stores forced shoppers online. But cheerleaders of the digital economy might be disappointed one year on: The share of online sales in Singapore, which peaked at 24.9 per cent of all domestic retail in May last year, has since tapered off to 10.1 per cent as at this February.
https://www.businesstimes.com.sg/government-economy/online-retail-boom-gets-reality-check

Tripartism 2.0 – moving from collaboration to co-creation
Tripartism 2.0 is about moving from collaboration to co-creation said Deputy Prime Minister Heng Swee Keat on Friday, during a dialogue at the Singapore National Employers Federation’s (SNEF) 40th anniversary event. Specifically, government agencies need to move away from an “agency-centric” approach to a “company-centric”one, said Mr Heng.
https://www.businesstimes.com.sg/government-economy/tripartism-20-moving-from-collaboration-to-co-creation

Strong, cohesive leadership must emerge from Cabinet rejig
Coming a mere nine months after the current Cabinet was unveiled, one clear message in Friday’s Cabinet reshuffle is that we should not get ahead of ourselves in trying to determine which fourth-generation (4G) leader is poised to step up, now that Deputy Prime Minister Heng Swee Keat has stepped aside as the Prime Minister-in-waiting.
https://www.businesstimes.com.sg/government-economy/strong-cohesive-leadership-must-emerge-from-cabinet-rejig

Half of Singapore’s ministries to see leadership changes in Cabinet reshuffle effective May 15
About half of Singapore’s 15 ministries, including key ones like finance and trade, will be helmed by a new leader come May 15 in a major Cabinet reshuffle just nine months after the general election. Key ministries such as finance, trade and industry, manpower and health are among the seven that will see shake-ups in what Prime Minister Lee Hsien Loong called “a more extensive reshuffle than is usual this early in the term of government”.
https://www.businesstimes.com.sg/government-economy/half-of-singapores-ministries-to-see-leadership-changes-in-cabinet-reshuffle
https://www.straitstimes.com/singapore/politics/singapores-cabinet-reshuffle-field-remains-open-for-4g-leadership-say-observers
https://www.businesstimes.com.sg/infographics/the-new-cabinet
https://www.businesstimes.com.sg/government-economy/gan-kim-yong-to-lead-mti-tan-see-leng-to-helm-mom
https://www.straitstimes.com/singapore/politics/singapores-cabinet-reshuffle-major-changes-but-its-not-time-to-read-the-tea
https://www.straitstimes.com/singapore/major-cabinet-reshuffle-with-7-ministers-given-new-roles-by-pm

New Finance Minister Lawrence Wong not likely to rock fiscal-policy boat: observers
Lawrence Wong is not expected to rock the fiscal policy boat when he starts his new job as Finance Minister on May 15, said observers after his appointment was announced on Friday as part of a major Cabinet reshuffle. The 48-year-old – who is leaving the Ministry of Education for a post that Prime Minister Lee Hsien Loong described as “a key ministry” – could be called to step in if the pandemic in Singapore worsens.
https://www.businesstimes.com.sg/government-economy/new-finance-minister-lawrence-wong-not-likely-to-rock-fiscal-policy-boat

Ong Ye Kung to co-chair Covid-19 task force with Lawrence Wong
As the Health Minister with effect from May 15, Mr Ong Ye Kung will co-chair the task force tackling the Covid-19 pandemic with Mr Lawrence Wong. Mr Ong succeeds Mr Gan Kim Yong, who has headed the Health Ministry for nearly a decade and will move to lead the Ministry of Trade and Industry (MTI). Mr Wong, who is currently Education Minister, will take over as Finance Minister next month.
https://www.straitstimes.com/singapore/ong-ye-kung-to-co-chair-covid-19-task-force-with-lawrence-wong

Companies’ Brief

Frasers shopping centre in Melbourne achieves sustainability certification
Singapore – A mixed-use project developed by Frasers Property Australia has won praise for its high level of sustainability. Burwood Brickworks in Melbourne has achieved the Living Building Challenge Petal Certification, noted the International Living Future Institute on Saturday (April 24). The certification requires developments to have a net positive impact “by challenging them to operate as cleanly, beautifully and efficiently as nature’s architecture”.
https://www.straitstimes.com/business/companies-markets/frasers-shopping-centre-in-melbourne-achieves-sustainability

Frasers Centrepoint Trust H1 DPU jumps 28%; it aims to focus on larger malls
Frasers Centrepoint Trust (FCT) intends to concentrate on larger malls as part of its portfolio management strategy. Speaking at a briefing following the release of the real estate investment trust’s results for its first half ended March 31, the chief executive of FCT’s manager Richard Ng said: “It’s been identified, as part of our strategy going forward, to keep to larger malls.”
https://www.businesstimes.com.sg/companies-markets/frasers-centrepoint-trust-h1-dpu-jumps-28-it-aims-to-focus-on-larger-malls

Ascendas Reit’s Q1 occupancy slips to 90.6%; it achieves positive 3% rental reversion
Ascendas real estate investment trust (Reit) reported positive rental reversion of 3 per cent in first quarter lease renewals, but portfolio occupancy slid to 90.6 per cent from 91.7 per cent in last quarter and the year-ago period. Occupancy in Singapore came down to 86.9 per cent for the three months ended March 31, 2021, from 88.6 per cent, the Reit manager said in a quarterly business update on Friday. It attributed this decline to non-renewals at the TÜV SÜD PSB Building and 138 Depot Road, located within the Depot Lane industrial estate.
https://www.businesstimes.com.sg/companies-markets/ascendas-reits-q1-occupancy-slips-to-906-it-achieves-positive-3-rental-reversion

Mapletree S-Reits grow and diversify
What started out over 20 years ago in 2000, to hold non-port properties transferred from PSA Corporation to Temasek Holdings, was the establishment of Mapletree Investment Pte Ltd (Mapletree). Since then, Mapletree a leading Singapore-based real estate development, investment, capital and property management group, has significant representation in the Singapore Reit market.
https://www.businesstimes.com.sg/companies-markets/mapletree-s-reits-grow-and-diversify

Suntec Reit Q1 DPU rises 16.2% to 2.045 Singapore cents on stronger operational performance
Suntec Real Estate Investment Trust’s (Suntec Reit) distribution per unit (DPU) increased by 16.2 per cent to 2.045 Singapore cents for its first quarter ended March 31, from 1.76 cents in the same period last year. Gross revenue edged up 0.2 per cent on year to S$87.1 million for the quarter, from S$86.9 million. Net property income rose 10.2 per cent to S$59.5 million for the quarter, from S$54 million a year earlier. This was due to stronger operational performances, the Reit manager said in an exchange filing on Friday.
https://www.businesstimes.com.sg/companies-markets/suntec-reit-q1-dpu-rises-162-to-2045-singapore-cents-on-stronger-operational

Corporate digest
https://www.businesstimes.com.sg/companies-markets/corporate-digest-1363
https://www.businesstimes.com.sg/companies-markets/corporate-digest-1362

Views, Reviews, Forum & Others

S’pore aims to meet climate targets via innovation: PM Lee
Singapore may be small and without access to resources, but it will strive to achieve its climate targets through innovation, said Prime Minister Lee Hsien Loong yesterday. He was speaking on the second day of the virtual Leaders Summit on Climate, which was convened by United States President Joe Biden. PM Lee said Singapore was turning to technology to reduce its emissions and adapt to the changing climate.
https://www.straitstimes.com/world/united-states/spore-aims-to-meet-climate-targets-via-innovation-pm-lee

Supply, disrupted: How Singapore should prepare for the next crisis
One year into the Covid-19 pandemic, mask shortages feel like a distant memory. Today, one can find disposable and reusable masks in most local stores, in a variety of sizes and styles. But the threat of a global mask shortage was very real when factories in China – responsible for half of the world’s surgical mask supply – began to shut down in early 2020. The potential supply crunch factored into the Singapore government’s decision to discourage mask-wearing among healthy people, in order to conserve the protective gear for healthcare workers.
https://www.businesstimes.com.sg/brunch/supply-disrupted-how-singapore-should-prepare-for-the-next-crisis

Will bullish sentiment on cryptocurrencies continue?
In recent months, there has been a surge of interest in cryptocurrencies (crypto). With banks and institutions slowly embracing it, and Coinbase’s listing on the Nasdaq stock exchange, it can be said that crypto volumes traded will likely continue to see increased growth. Riding this wave of euphoria, the “original” cryptocurrency Bitcoin, has benefitted the most. Bitcoin saw an exponential surge in price from US$29,000 in Jan 1, 2021 to the all-time-high of US$65,000 (R1) in mid-April 2021.
https://www.businesstimes.com.sg/companies-markets/will-bullish-sentiment-on-cryptocurrencies-continue

Are private equity fund managers up to the job when it comes to predictable, persistent performance?
In the private equity universe, the internal rate of return (IRR) is the key performance indicator. It measures the annualised yield achieved over the holding period of an investment. Yet the IRR is not a scientific method to calculate performance. Far from it. Fund managers can manipulate, misreport, or altogether fabricate their results, making them unreliable. But a larger question for prospective investors is whether private fund managers possess unique skills that can somehow provide certainty or, at the very least, predictability.
https://www.businesstimes.com.sg/wealth-investing/are-private-equity-fund-managers-up-to-the-job-when-it-comes-to-predictable

Purpose-built dorms now 60% filled, down from 88% a year ago
Singapore – The average occupancy in purpose-built dormitories (PBDs) for migrant workers is around 60 per cent of their maximum limit today, down from 88 per cent a year ago, the authorities said on Friday (April 23). This is because some workers have moved into new quick-build dorms (QBDs) and construction temporary quarters (CTQs), while others have returned home, the Ministry of Manpower (MOM) and Ministry of National Development (MND) told The Straits Times.
https://www.straitstimes.com/singapore/purpose-built-dorms-now-60-filled-down-from-88-a-year-ago

Update on COVID-19 (Coronavirus Disease 2019) Situation

Forty new Covid-19 cases in Singapore, all imported
There were 40 new coronavirus cases confirmed as at Sunday noon, taking Singapore’s total to 61,006. All of the cases were imported and had been placed on stay-home notice upon arrival in Singapore, said the Ministry of Health (MOH). Among them were two Singaporeans, 10 permanent residents and six foreign domestic workers.
https://www.businesstimes.com.sg/government-economy/forty-new-covid-19-cases-in-singapore-all-imported
https://www.straitstimes.com/singapore/40-new-imported-cases-none-in-community-dorms

2 of 3 new local virus cases had received both jabs of vaccine
Two of the three locally transmitted cases of Covid-19 reported yesterday had received both doses of the vaccine, while the third had received one of two jabs. The first – a community case – is a 38-year-old Indonesian man in Singapore for a work project, said the Ministry of Health (MOH). His infection was detected during a pre-departure test on Thursday before his trip back to Indonesia.
https://www.straitstimes.com/singapore/2-of-3-new-local-virus-cases-had-received-both-jabs-of-vaccine

Hong Kong-Singapore air travel bubble to start on May 26: sources
Hong Kong and Singapore will announce a start to their highly anticipated two-way air travel bubble as soon as Monday, according to people familiar with the matter, after multiple delays. Flights under the agreement – which allows people to travel quarantine free between the financial hubs – will begin from May 26, said the people, who asked not to be identified as they’re not authorised to speak publicly. The number of flights will be increased by June 26 if there aren’t further outbreaks in either city, one of the people said.
https://www.businesstimes.com.sg/government-economy/hong-kong-singapore-air-travel-bubble-to-start-on-may-26-sources-0
https://www.straitstimes.com/asia/east-asia/spore-hk-set-to-announce-may-26-start-for-travel-bubble-sources

*For more information, please visit the Ministry of Health (MOH) website at www.moh.gov.sg and refer to go.gov.sg/mohupdates for updates on the COVID-19 (Coronavirus Disease 2019) situation